Louisiana is among the country’s most “tax-friendly” states, according to Kiplinger, a Washington D.C.-based business forecasts and personal finance publication. The group released an interactive state-by-state guide to taxes, allowing users to look at individual states, as well as compare up to five different states.
Driving Louisiana’s ranking, says Kiplinger, is that it boasts some of the nation’s lowest property taxes, though the publication notes sales taxes here are among the highest in the U.S.
Compared to next-door-neighbor Texas, Louisiana residents pay nearly a quarter of what Texas landowners do on property taxes. Property taxes are $555 per $100,000 of assessed home value in Louisiana, compared to Texas’s $1,993 tax bill per $100,000 of assessed home value.
Other quick-hit facts:
• For vehicles, Louisiana’s 4% sales tax is due on purchases. Local sales taxes ranging from 1% to 5.5% can also apply.
• The state has no inheritance or estate tax.
• For income taxes, the effective tax rate is 2.87% for single filers and 4.09% for joint filers.
Other tax-friendly states, according to the firm, are California, Montana, Colorado, New Mexico, Texas, Mississippi, Alabama, Virginia and Delaware.
